China Merchants Securities International has announced that Tencent has officially launched the Hunyuan Hy3 large-scale model, which serves as the official iterative update to the Hy3preview. This model leverages a Mixture of Experts (MoE) architecture, boasting a total of 295 billion parameters and 21 billion active parameters, and supports 256K contexts. From a cost perspective, the computational expenses associated with the Hy3 large-scale model are notably lower than those of comparable flagship models. Specifically, its API input price has been reduced to RMB 1 per call. Token consumption is approximately 47% to 49% lower than that of GLM-5.2. This effectively cuts down on the marginal costs of Tencent Cloud's AI services, paving the way for widespread consumer-side applications. Regarding revenue, the enhanced capabilities of the model are projected to spur an increase in the number of API calls for Tencent Cloud's large-scale models. Additionally, it will elevate the user experience of products like QQ Browser and WeChat Reading, indirectly fostering greater user engagement and boosting commercialization conversion rates. China Merchants Securities International maintains its 'Overweight' rating for Tencent, with a target price of HKD 632. The firm believes that the release of Hy3 underscores Tencent's commitment to enhancing model reliability and anticipates that the market will reevaluate the latent value of Tencent's AI assets.